Market regulator Securities and Exchange Board of India (Sebi) is making plans to limit the equity exposure of investors based on their net worth, reported The Economic Times quoting people aware of the development.
NSE
The move is aimed at preventing individuals from going overboard on considerably riskier equity investments, the report said, adding that Sebi has already informed stockbrokers about the proposal.
Sebi wants investors’ assets certified by chartered accountants and brokers, who in turn will make the decision regarding their exposure limit, the daily said. The policy is new to India but it is already in place in many markets across the globe.
If implemented, the policy can seriously affect a large share of equity investors, the report added.
First Published:Aug 13, 2018 10:04 AM IST